Top trade idea for October 22nd, 2015 – EURJPY
By Mircea Vasiu on Oct 22, 2015 11:11:38 GMT
This double combination on the eurjpy pair needs to break lower and be retraced minimum 61.8% as it is most likely the leg of a contracting triangle of a bigger degree and this implies bearish implications for the cross.
Ahead of the ECB meeting today the tone the Euro is trading with is not bullish and it means the outcome of the meeting, whatever it will be, it will not be bullish on the medium term. Inflation is still missing in the Eurozone and the central bank cannot ignore that, so a dovish tone is to be expected.
This triangle that needs to break lower is actually an irregular triangle that for the e wave in purple is forming another triangle of a lower degree. It is in a way similar with the daily triangle that the eurusd is forming and that one point to lower levels as well.
All in all, our recommendation is to stay short for the 130.50 target to come, or the 61.8% retracement, having 137.30 stop loss.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
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